Investing in Cash flow properties, Alabama big cities' suburbs

[Shannon D.]

Hi,

I am planing to purchase some cash flow properties in suburbs of Huntsville, Birmingham and Montgomery. Given the path of growth information for each city, what suburbs/zip codes are currently attractive with B neighborhood and reasonable appreciation + cash flow?

[Jonathan Mednick]

Hi there, 

I've been doing this for 18 years but in 2011, I checked out Birmingham and it was so amazed at the opportunities that I sold my beach house in Fort Lauderdale of 15 years and moved to Birmingham. I sell turnkey passive income properties, wholesale, buy and hold, flip through my investment company. I am also a broker which supports our investment side of the operations as well as selling flips for other investors. 

The market here has gotten tighter. Most funds came in 2012 and left in 2017. The affordability factor is strong and coupled with low taxes and insurance and mild winters, makes Birmingham the number choice for acquiring turnkey properties. Unlike other markets, you can employ more strategies holding or flipping properties. 

As for zip codes, it really depends on which type of asset you are targeting? Would you prefer to be in a C class or B class area? Is your focus primarily monthly cash flow or appreciation? What's your monthly expectation with net dollars in your pocket? Do you adhere to the 1% strategy? This will drive your ROI which will directly correspond with the zip codes specific to your strategy.

Happy to help with any additional questions on Birmingham.